USMCA triggers opportunity for manufacturing production in ports and industrial parks - Oradel
Private equity seeks to contribute to the growth of the economy
5 October, 2020
Costs will drop for manufacturing companies that move their operations from China to Mexico
5 October, 2020

USMCA triggers opportunity for manufacturing production in ports and industrial parks

Thanks to the USMCA, companies have become interested in establishing operations in Mexico and carrying out manufacturing production in the country, shaping the exports market for North America.  

This is mainly due to the commercial tensions between the United States and China, whose industry leaders have discovered a substantial area of opportunity to consolidate logistics and distribution chains in order to access the United States market, considered the largest worldwide.  

According to Francisco Muñoz, Senior Vice President of Industry and Logistics for CBRE, an industrial real estate firm focused on both manufacturing and logistics, companies that stopped production or suffered a downturn are seeing a recovery. 

Due to the Mexican economy’s high dependence on exports, Mexico has a higher number of warehouses than all other Latin American countries put together. 

In addition, unemployment rates are between 4% and 7.5% in the country’s main industrial markets. 

Therefore, nearshoring, or the relocation of manufacturing operations to Mexico, presents a viable opportunity driven by the disruption of the Asian supply chain, especially out of China, as well as the interest of companies to reduce their manufacturing production costs.

Because of this, U.S. companies now have the opportunity to expand their distribution centers to key markets in Mexico. 

Industries engaged in exports and e-commerce, medical equipment, logistics, distribution, packaging and agriculture are expected to grow in the short term, while the technology, data center and heavy industry sectors are projected to grow in the medium term.

Oradel Industrial Center is located in Nuevo Laredo, providing competitive advantages to international companies seeking to establish their manufacturing and logistics operations just minutes from the U.S. border. 

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